MUMBAI: Chinese billionaire Guo Guangchang, who runs a diversified conglomerate under the banner Fosun International, is set to make a $1.4-billion acquisition of KKR-backed Gland Pharma, a contract manufacturer of injectables, later this week. The 49-year-old Guangchang’s Shanghai Fosun Pharmaceutical (Group) Co and Hyderabad-based Gland Pharma are expected sign the deal in Singapore on Wednesday evening and announce it to the Hong Kong stock exchange by Thursday morning, people directly familiar with the matter said.
The deal was in the making after the Gland promoter family and global private equity investor KKR mandated investment Jefferies & Co to scout for suitors. The bidding process had attracted interests from US-based Baxter and buyout investor Advent International, among others. In May this year, Fosun had informed the Hong Kong exchange that it had bid for Gland Pharma but didn’t disclose details.
Besides being the largest Chinese M&A, the deal would also see one of that country’s wealthiest investing into the Indian manufacturing story, giving heft to Prime Minister Narendra Modi’s ‘Make in India’ initiative. Gland manufactures injectables to companies in India and the US like Mylan and Dr Reddy’s. Promoter Ravi Penmetsa’s family and KKR own over 95% stake in the company.
Guangchang, with an estimated worth of about $8 billion, has been a prolific acquirer of overseas assets in recent years. Fosun has spent $10 billion on international deals — including takeover of Club Mediterarrane — in the past 24 months. Fosun’s business interests span across financial services, healthcare and real estate. Gland Pharma, KKR and Fosun could not be reached immediately for comments.